Supermarkets should target GM/HBC sales

ARLINGTON, Va. — There is a large opportunity for grocery stores to increase sales in the general merchandise (GM) and health and beauty care (HBC) categories, according to research conducted on behalf of the Food Marketing Institute by Acosta Strategic Advisors.

Some of the study’s highlights are the subject of a video released by FMI.

“Want to hear about how you can increase sales while combating deflation?” the video asks grocery retailers. “With customers that already shop in your stores … with products you already have on your shelves … that shoppers always have in their homes and use everyday?”

The answer is for grocery retailers to get their customers to buy GM and HBC products from them, rather than losing that business to other retail channels, including drug stores, discounters or online merchants. The video points out that general merchandise products have some of the highest margins in the center store, and GM products appeal to millennial consumers who are establishing their households. GM and HBC sales also translate into significantly bigger baskets for food retailers.

Some of the GM categories with the highest potential for grocery retailers include tabletop, cookware, kitchen gadgets, lighting/electrical, insect repellants and seasonal. In the HBC aisles, the five key categories for supermarket operators are vitamins, hair care, medications/remedies, oral hygiene and cough/cold.